Robinhood Zero Day Options (0DTE) Trading Explained In 2023

Zero days to expiration (0DTE) options trading is a popular strategy among traders looking to potentially make quick profits - with a significant risk of losing all of their money invested immediately.

These options contracts are due to expire within a day, making the window for executing trades extremely small.

Robinhood, a popular trading platform, allows traders to place options trades directly from their app, including 0DTE options.

However, it's important to understand this is a risky strategy where 100% loss of investment capital is likely.

What Are 0DTE Options?

0DTE options can be used to sell options on the last day that they are valid.

However, executing and hedging these trades requires a strong understanding of options trading and the associated risks.

The biggest risk is that the options expires worthless, and you have very little time for this not to be the case.

How To Trade Options On Robinhood

To place an options trade on Robinhood, follow these steps:

1. Tap the magnifying glass on your home page
2. Search the security you’d like to trade options for
3. Tap the name of the security you’re looking for
4. Tap Trade in the bottom right corner of the stock’s or ETF’s Detail page
5. Tap Trade Options
6. The expiration date is displayed just below the strategy and underlying security.
7. You can scroll right to see expirations further into the future.

Final Thoughts

In conclusion, Robinhood allows traders to place 0DTE options trades directly from their app.

Traders should thoroughly research and understand the risks associated with each strategy before executing any trades.

This article was generated using automation technology, and thoroughly edited and fact-checked by an editor on our editorial staff.